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Technology Stocks : SYQUEST
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To: Sowbug who wrote (5128)12/21/1997 2:10:00 PM
From: Michael Coley  Read Replies (1) of 7685
 
RE: Tie Ratios and Nintendo.

Sowbug,

>> Another comparison: Sega and Nintendo, like so many Japanese technology manufacturers, well-nigh dump the consoles and make up the rest on licensing fees for the cartridges. <<

Good analogy. I was just thinking exactly the same thing this morning when someone mentioned the Nintendo 64. The consoles are cheap ($150?) but the games add up quick ($50 each?). I bet the tie ratio there is pretty similar there.

One good question about SyQuest's strategy with SparQ is this: With the traditional model of making the money on the disks, what does the cheap prices on the SparQ disks do to SyQuest? I think it's too early to tell, but I have a hard time seeing what they will accomplish with it.

- Michael Coley
- i1.net
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